Employee Shareholders Claim U.S. Sugar Hid Buyout

Law360, New York (February 1, 2008, 12:00 AM EST) -- A group of employee shareholders has filed a proposed class action against U.S. Sugar Corp., its executives and directors, saying they hid a lucrative buyout offer from the company’s shareholders and thereby breached their fiduciary duty and violated the Employee Retirement Income Security Act.

The complaint, filed Thursday in the U.S. District Court for the Southern District of Florida by Diallo Johnson, Mary Rafter and Linda Stanley, alleges U.S. Sugar’s directors, in particular Chairman William S. White and his wife Claire Mott White, refused two offers...